Ardagh Group announces that it intends to raise a total of $1,565 million equivalent (USD/EUR) of debt financing through an offering of Senior Secured Toggle Notes due 2023 (the “Notes”) issued by ARD Finance S.A.
The net proceeds from this offering, estimated at €1,391 million, will be used to fund the redemption of the existing 8.625% USD Senior PIK Notes due 2019 and 8.375% EUR Senior PIK notes due 2019 at an accreted value of €1,121 million, including the optional redemption premium and accrued interest, and to finance a €270 million return of capital to shareholders.
On a pro forma basis, after giving effect to the acquisition of the beverage can business from Ball Corporation and Rexam PLC, which was completed on June 30, 2016, Ardagh Group had revenue and EBITDA of €7,812 million and €1,316 million, respectively, for the last twelve months ended June 30, 2016. We estimate that we will achieve cost synergies of at least $50 million (or €45 million), with most of this being achieved by the end of the second full year following the acquisition completion date.
For further information investors should refer to http://www.ardaghgroup.com/corporate/investors.